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Earnings recession seems over for listed companies as economy recovers - Business News

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India Equity Strategy Report - Quarterly flipbook: Q3 - upgrades galore! - HDFC Securities


India Equity Strategy Report - Quarterly flipbook: Q3 - upgrades galore! - HDFC Securities
Posted On:
Mr. Varun Lohchab, Head Institutional Research, HDFC securities
Q3FY21 was another strong quarter, beating expectations across most sectors, led by margin surprises and even slight beat on revenues. Sales continue to rebound at a faster pace than costs post the lockdown, resulting in earnings beat. Key highlights of the quarter: (1) Q3 margins beat estimates across multiple sectors such as Cement, IT, Chemicals, Paints, Durables due to (a) cost efficiencies leading to lower SG&As (A&P, travel expenses, etc.), (b) improved pricing power in the wake of lower competition; (2) Festive season and unlock led sharp demand rebound; (3) larger companies gained market share; (4) collection trends improved for lenders; (5) commodity costs rising sharply helped oil and metals sectors while gross margin pressures were visible in autos/durables etc. ....

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